Which condo can I afford

To determine which condo you can afford in Singapore, you need to consider several key factors:

Income and Debt Obligations

Your monthly income and other debt obligations, such as car loans, credit card balances, and other financial commitments, play a crucial role. The Total Debt Servicing Ratio (TDSR) set by the Monetary Authority of Singapore (MAS) caps your total debt payments at 55% of your gross monthly income.

Loan-to-Value (LTV) Ratio

The LTV ratio is typically capped at 75%, meaning you can borrow up to 75% of the property's purchase price, and the remaining 25% must be paid using cash or CPF funds.

Loan Tenure and Interest Rate

The loan tenure is usually capped at 30 years or until you reach 65 years old, whichever is shorter. The interest rate used for loan assessments is often a medium-term interest rate.

Affordability Calculators

You can use an affordability calculator to estimate how much you can afford. Here are the general steps:

• Input your monthly income, other debt obligations, and any existing properties you own.
• Calculate your maximum loan eligibility based on TDSR and LTV ratios.
• Determine your maximum property price based on these calculations.

For example, if your monthly income allows for a maximum loan of $576,018 and assuming a 75% LTV ratio, you would need to ensure the property price does not exceed a certain amount where the loan does not exceed this limit.

Property Type and Additional Costs

Consider the type of condo you are interested in, whether it is a new launch condo, an executive condo, or a resale property. Also, factor in additional costs such as Buyer's Stamp Duty (BSD), Additional Buyer's Stamp Duty (ABSD) if applicable, and other expenses.

To get a precise estimate, you can visit EdgeProp Singapore and use their resources or consult with a real estate agent who can guide you through the process and help you find a condo that fits within your budget.